The Chilean has been linked with a switch to the Etihad Stadium since earlier in 2013 and Roberto Mancini's sacking has added fuel to the fire that Pellegrini will leave la Rosaleda for the Premier League outfit in the summer.

The coach told his outgoing club's website that "sporting reasons" are behind his departure from the Liga side but believes the Andalusians have a good future ahead of them regardless of his future.

"Everyone has the right to follow their own path and Malaga have to take another to me now," he said. "The club have the funding and the will to have a successful future.

"Malaga will have their story without me and are also going to have a future without me.

"I would like to thank the owners of the club for blindly putting their trust in me. The most important foundation of this club is on the team and not individuals."

Pellegrini's side were seconds away from a place in the last four of the Champions League before a late goal in the second leg quarter-final against Borussia Dortmund dramatically knocked them out.

Despite their financial woes in the past 12 months, Malaga have marched to sixth with La Liga almost at an end and Pellegrini will take charge of the final two matches before departing.

The coach, who spent a season in charge of Real Madrid before Jose Mourinho's arrival, is set to take over a Manchester City side who finished second in the Premier League and lost the FA Cup final to Wigan.